SMS Pharmaceuticals Limited , a leading player in the pharmaceutical sector, has reported a strong financial performance for the second quarter of fiscal year 2026, demonstrating significant growth in both revenue and profitability.

Financial Highlights

The company's standalone financial results for Q2 FY26 showcase impressive year-on-year growth:

Note: All figures are in Rs. lakhs

For the half-year period ended September 30, 2025, SMS Pharmaceuticals reported:

• Revenue from operations of Rs. 43,847.66 lakhs
• Net profit of Rs. 4,335.05 lakhs

Strategic Developments

During the quarter, SMS Pharmaceuticals completed a significant corporate action:

• Conversion of all 90 lakh convertible warrants into equity shares
  • 40 lakh warrants converted in March 2025
  • Remaining 50 lakh warrants converted in September 2025
• Total proceeds raised: Rs. 1,143 crores

This strategic move is expected to strengthen the company's capital structure and provide additional funds for growth initiatives.

Dividend Announcement

The company has declared a dividend of Rs. 0.40 per equity share, amounting to a total payout of Rs. 354.61 lakhs. This decision reflects the management's confidence in the company's financial stability and commitment to shareholder returns.

Board Approvals

The Board of Directors has approved both standalone and consolidated unaudited financial results for Q2 and H1 FY26. Additionally, the company confirmed that there has been no deviation in the utilization of preferential issue proceeds from the stated objectives, demonstrating transparency and adherence to its commitments.

Outlook

SMS Pharmaceuticals' strong Q2 performance, coupled with its strategic warrant conversion and consistent dividend policy, positions the company favorably in the pharmaceutical sector. The substantial increase in revenue and net profit indicates robust operational efficiency and market demand for the company's products.

As the pharmaceutical industry continues to evolve, SMS Pharmaceuticals' focus on expanding production capacities and integrating key starting materials (KSM) may further strengthen its market position and drive future growth.

Investors and stakeholders will likely keep a close watch on the company's future initiatives and how it leverages its enhanced capital position to capitalize on market opportunities in the coming quarters.

SMS Pharmaceuticals Limited has delivered robust financial results for the second quarter, showcasing significant growth across key financial metrics.

Financial Highlights

SMS Pharmaceuticals reported a substantial increase in its consolidated net profit for Q2 FY2025-26, which rose to ₹253.10 crore from ₹140.90 crore in the same quarter of the previous year, marking a 79.70% year-over-year growth.

The company's revenue also saw a notable uptick, increasing to ₹242.40 crore compared to ₹197.00 crore in the corresponding period last year, representing a 23.00% growth.

Operational Performance

SMS Pharmaceuticals' operational efficiency showed marked improvement, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) growing significantly to ₹48.40 crore from ₹31.50 crore in the year-ago period. This represents a robust 53.70% increase in EBITDA.

The EBITDA margin expanded by 396 basis points, reaching 19.95% compared to 15.99% in Q2 FY2024-25. This expansion in margin indicates enhanced operational efficiency and improved profitability across the business.

Conclusion

SMS Pharmaceuticals Limited's Q2 FY2025-26 results demonstrate a strong financial performance with substantial growth in net profit, revenue, and EBITDA. The significant expansion in EBITDA margin points to improved operational efficiency, which may position the company well for future growth.